PGIM Sees 3 Fed Rate Hikes in 2026 After Flipping From Cut Calls
Updated
Updated · Bloomberg · Jun 15
PGIM Sees 3 Fed Rate Hikes in 2026 After Flipping From Cut Calls
3 articles · Updated · Bloomberg · Jun 15
Summary
Three Federal Reserve rate hikes in 2026 are now PGIM’s base case, a sharp reversal from its April view that the central bank would cut rates this year.
PGIM said a remarkably resilient US economy and sticky inflation forced the shift, arguing the Fed will need to brake growth rather than ease policy.
The asset manager’s mid-year outlook also projects those hikes will be reversed in 2027, making its call one of the market’s more aggressive tightening forecasts.
PGIM is the investment management arm of Prudential Financial, and its new stance underscores how persistent inflation risks are still reshaping Wall Street rate expectations.